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Smith leaves under a cloud (again)
The loan move was made while Neale Cooper was manager, but under Ronnie Jepson, Smith has barely featured.
Smith was in the side for three of the club's most embarassing's defeats this season, including the 3-2 FA Cup defeat at Burscough, the exit from the LDV Vans Trophy against Wycombe on penalties.
His final performance for the Gills was in the 5-0 humiliation at Layer Road, where he was booed off the field by his own fans in the second half. He hasn't set foot on the pitch since then - and it was far from surprising when news that he wouldn't be offered a contract surfaced.
Before then, Smith made himself unavailable for selection, angering Ronnie Jepson and perhaps sealing his fate with the club.
But Smith, 34, believes he was promised a new deal by chairman Paul Scally, and that the club has left him in the lurch.
A statement issued by his agent Andrew Mills, said, "One of the conditions, in order for Walsall to allow me to return to Gillingham on loan while continuing to pay my wages, was that I cancelled the remaining 18 months of my contract with them, leaving me effectively out of work from January," he said.
"Since returning for the Blackpool game, I have been given several assurances that the permanent contract was imminent.
"During recent meetings, these conversations have been called into doubt but I am clear about the terms of my return.
"To be told firstly that the chairman was not aware I had cancelled my Walsall contract and secondly that due to banking requirements the club could not commit any further finances to playing staff, is extremely disappointing.
"I now find myself with no contract or income from December 31, which not only has serious ramifications for me on a personal level, but also my family. I feel badly let down by a club that has been close to my heart for the last eight years.
"It looks as though I’ve played my last game in a Gillingham shirt so I would like to thank the fans who made me so welcome on my return."
Gills chairman Paul Scally refuted Smith's allegations, and told the KM, "I didn’t know until three weeks ago that he’d cancelled his Walsall contract and as far as I was concerned, it was a loan deal with a view to extending it on January 1 and that was the situation at the time of signing.
"At no time did I know, realise or suggest that he had cancelled his contract with Walsall.
"With the financial situation and the change in management it was decided that we couldn’t offer him a new contract. It just wasn't possible."
Smith originally left Gillingham for Walsall in the summer after refusing the new contract offered by the club and failed to win a regular first-team place at the Bescot. He is now unattached to any pro club.